PKR extends losses to 178.24/USD

December 29, 2021 (MLN): Pakistani rupee (PKR) lost 5 paisa against the US dollar in today's interbank session as the currency closed the trade at 178.24 per USD.

In the previous session, the local unit had settled the session at PKR 178.19 per USD after shedding only two paisa.

The rupee witnessed a dull trading session with quotes being recorded in a range of 15 paisa per USD showing an intraday high bid of 178.30 and an intraday low offer of 178.15.

Despite taking several measures by SBP, the demand for dollar still persists, however, these measures have halted the volatile movements.

Year-end demand for USD is keeping the market on its toes Meanwhile, the outlook for PKR remains weak, as the trend suggests that there is limited room for the rupee to appreciate, Asad Rizvi, the former Treasury Head at Chase Manhattan said.

“While, in today’s T-Bills auction, banks will not hesitate to demand a higher return. It’s tricky, MOF may not pick all,” he added.

From July’21 to date, the local unit has lost Rs20.69 against the USD. Similarly, the rupee fell by PKR18.40 in CY21, with the month-to-date (MTD) position showing a decline of 1.41%, as per data compiled by Mettis Global.

Within the open market, PKR was traded at 176.25/178.00 per USD.

Alternatively, the currency gained 24 paisa against the Pound Sterling as the day's closing quote stood at PKR 239.14 per GBP, while the previous session closed at PKR 239.38 per GBP.

Similarly, PKR's value strengthened by 75 paisa against EUR which closed at PKR 200.98 at the interbank today.

On another note, within the money market, the overnight repo rate towards the close of the session was 10.25/10.30 percent, whereas the 1-week rate was 9.85/9.95 percent.

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